Partially upheld: account access failure and credit file reporting of missed payments complaint against ZILCH TECHNOLOGY LIMITED trading as Zilch

Decision detail

Summary

Mrs F complained to Zilch and the FOS about being unable to access her online account dashboard since 2024 due to loss of access to her original email address, which prevented her from managing her account. Although Zilch suggested a workaround (closing and reopening the account), Mrs F resumed using the account in April 2025 and subsequently missed payments, resulting in adverse credit file reporting. The ombudsman partly upheld the complaint, directing Zilch to pay £50 compensation for distress and inconvenience but refusing to order removal of the missed payment information from the credit file, finding it accurate and determining that Mrs F had reasonable mitigation options available to her.

The Ombudsman's reasoning

The ombudsman found that it was reasonably foreseeable that customers could lose email access and that this would cause harm by preventing account management. While compensation for distress and inconvenience was appropriate, the ombudsman determined that the missed payment information on the credit file was accurate and fairly reflected the account status. The ombudsman concluded that Mrs F could have reasonably mitigated the situation by closing and reopening her account (as suggested by Zilch in January 2025) or switching providers, rather than resuming use of the account in April 2025 knowing she could not manage it online. Additionally, Mrs F had alternative means of obtaining account information and making payments through phone calls and bank transfers, which she had previously used successfully.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website